DMW profit up 17%

Construction and property development firm D.M. Wenceslao and Associates Inc. (DMW) grew its net profit in the first semester by 17 percent year-on-year to P1.12 billion on higher earnings from leasing and residential development.

Six-month revenue rose by 17 percent year-on-year to P1.26 billion, DMW disclosed to the Philippine Stock Exchange.

Of the total revenue, recurring income accounted for P983.4 million, or 78 percent, including rentals from land, building and common use service area fees.

By business segment, leasing of land was up by 3 percent year-on-year to P497.4 million in the first semester. Rentals of buildings and other revenues related to leasing grew by 12 percent and 9 percent year-on-year to P392.5 million and P93.4 million, respectively.

Revenues from the sale of residential condominium units rose by six times year-on-year to P266.7 million. Leasing of land, building and sale of condominium units represented 39 percent, 31 percent and 21 percent of total revenue, respectively.

Net income margin was 90 percent, up from 89 percent last year.

“Second quarter was a record quarter for our residential business driven by higher percentage of residential project completion and ongoing preselling activities,” said Delfin Angelo Wenceslao, DMW chief executive officer.

During the quarter, DMW topped off Pixel Residences, its first residential development that was fully presold in June 2017 and is expected to be completed by end-2019.

DMW also launched the third tower of MidPark Towers after the project reached 90 percent take-up of the units launched in November 2018. As of end-July, total presales of MidPark Towers surpassed P4.8 billion from P4.3 billion reported in early June.

As of end-June, he said DMW had deployed P1.17 billion, or 15 percent, of its net proceeds from the initial public offering primarily for pipeline project development,” Wenceslao added.